Secondary Bond market yields recover

Friday, 2 January 2026 00:12 - - {{hitsCtrl.values.hits}}

Rupee appreciates

By Wealth Trust Securities

The secondary Bond market yesterday opened the New Year with yields dropping on the back of renewed buying interest kicking in as rates hit technical support levels, sparking a recovery. This movement was particularly on the belly-end of the yield curve on 2028-2032 tenors. Market activity and transaction volumes were seen at healthy levels.

In terms of the secondary Bond market trade summary the 01.05.28 maturity traded down the range of 9.20%-9.15%. The 01.07.28 maturity traded down the range of 9.25%-9.20%. The 15.09.29 and 15.10.29 maturities changed hands at the rate of 9.75% and the 15.12.29 maturity traded down the range of 9.86%-9.78%. The 15.05.30 changed hands at the rate of 9.80% and 01.07.30 maturity traded down the range of 9.87%-9.80%. The 15.03.31 maturity traded at 10.00% whiles the 01.10.32 maturity traded down the range of 10.40%-10.35%.

The total secondary market Treasury Bond/Bill transacted volume for 31 December 2025 was Rs. 26.40 billion.

In money markets, the net liquidity surplus stood Rs. 128.14 billion deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%.

The weighted average rates on call money and repo were registered at 8.04% and 8.05% respectively.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 309.45/309.60 as against Rs. 309.50/309.80 the previous day.

The total USD/LKR traded volume for 31 December was $ 69.75 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)